Sonoco Products Company (SON)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 63,486 | 369,589 | 466,815 | 503,008 | 614,832 | 607,125 | 595,470 | 615,931 | 571,283 | 563,089 | 519,730 | -107,604 | -160,982 | -256,673 | -287,731 | 244,407 | 255,592 | 325,087 | 360,959 | 391,783 |
| Revenue (ttm) | US$ in thousands | 6,299,940 | 6,572,460 | 6,607,010 | 6,689,050 | 6,781,290 | 6,821,510 | 7,001,310 | 7,208,510 | 7,249,710 | 7,012,880 | 6,537,850 | 6,008,110 | 5,590,430 | 5,527,590 | 5,424,710 | 5,287,440 | 5,237,440 | 5,169,940 | 5,211,560 | 5,325,800 |
| Pretax margin | 1.01% | 5.62% | 7.07% | 7.52% | 9.07% | 8.90% | 8.51% | 8.54% | 7.88% | 8.03% | 7.95% | -1.79% | -2.88% | -4.64% | -5.30% | 4.62% | 4.88% | 6.29% | 6.93% | 7.36% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $63,486K ÷ $6,299,940K
= 1.01%
The pretax margin of Sonoco Products Company has shown fluctuations over the financial periods analyzed. It started at 7.36% in March 2020 and gradually declined to as low as -5.30% in June 2021 and -4.64% in September 2021, indicating a period of financial challenges for the company. However, there was a positive turnaround starting from June 2022, with the pretax margin consistently increasing to reach a peak of 9.07% in December 2023. This improvement demonstrates the company's ability to effectively manage its operating expenses and generate higher profits before taxes.
In more recent periods, there was a slight decrease in the pretax margin to 7.52% in March 2024, followed by a further decline to 1.01% in December 2024. This downward trend could suggest potential pressure on profitability, requiring the company to closely monitor its cost structures and revenue generation strategies in the upcoming periods to maintain sustainable financial performance. Overall, Sonoco Products Company has demonstrated resilience in improving its pretax margin over time, but recent declines signal a need for continued attention to maintaining profitability levels in the future.
Peer comparison
Dec 31, 2024